We speak with Dan Edlebeck, head of Growth at Phi Labs, about why investments in the infrastructure in the crypto and blockchain spaces are critical. Edlebeck also shares where investments in the digital assets space are currently being deployed.
How has the digital assets space been performing?
I see a divergence in the investment and inflows of capital into crypto and the innovation and building happening in the industry. Crypto capital flows have been largely stagnant over the past nine months. After the FTX collapse in November, there has been cold feet around capital deployment in the industry. According to data from Bloomberg and CoinShares, capital asset flows in crypto have been net negative throughout 2023. However, the past month has seen an uptick in investment. I believe emerging investment markets, including the MENA region, will make meaningful investments.
From the development and innovation lens, the industry is flourishing. Development continues to happen at the infrastructure layer: Layer 1 (Move development language, EVM development, Comsos IBC, Solana, Layer Zero) and Layer 2 blockchains (Optimistic rollups and ZK rollups) are gaining lots of traction. Liquid staking derivatives and real-world assets are two emerging sectors bringing in builders and entrepreneurs that have never interacted with web3 previously. Innovations in blockchain interoperability…
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